New Legislation Tackles Staged Accidents, Fraudulent Claims, and Financing
Arlington, Virginia – The American Trucking Associations has expressed its support for the newly introduced Highway Accident Fairness Act of 2021, spearheaded by Representatives Henry Cuellar (D-TX-28) and Garret Graves (R-LA-6). The legislation aims to alleviate the financial strain on trucking companies by addressing fraudulent insurance claims arising from staged accidents.
“We are grateful to Reps. Cuellar and Graves for proposing this sensible legislation aimed at combating the widespread abuse of lawsuits targeting the trucking sector. Staged accidents, third-party litigation funding, and excessive jury awards are transforming civil justice into a profit-making enterprise, endangering public safety on highways while increasing costs and pressures on our supply chain,” stated Chris Spear, President and CEO of the ATA. “This bill seeks to restore fairness and balance to the legal system, ensuring that justice is the guiding principle in accident litigation rather than opportunistic profit-taking.”
The Highway Accident Fairness Act of 2021 includes several key provisions:
- Ensure that victims of highway accidents with legitimate claims receive just and timely recoveries;
- Establish federal court jurisdiction for interstate cases of significant national relevance;
- Preserve stability in interstate commerce and guard against the safety risks posed by staged accidents;
- Create transparency around investment from litigation finance companies in highway accident lawsuits for profit;
- Shield motor carriers and insurers from the financial burdens associated with defending against, settling, or being held liable for fraudulent claims resulting from staged incidents; and
- Relieve law enforcement agencies from the added resource drain of addressing the consequences of staged accidents.
“Highways play a crucial role in our economic supply chain, facilitating daily transfers of goods across state lines to stock store shelves and supply homes. We need to ensure these transit routes remain safe and accessible throughout the year,” said Congressman Cuellar. “This is why passing legislation that protects truckers from the dangers of staged accidents and the ensuing economic repercussions is essential. I appreciate Rep. Graves and the American Trucking Association for their unwavering support of this effort.”
“Drivers in Louisiana face some of the highest insurance premiums in the country, which is simply unacceptable. The solutions do not need to be overly complicated. Our bill is designed to thwart criminal organizations that contribute to elevated costs for driving and doing business in Louisiana,” Congressman Graves stated. “One settlement of $4.7 million led to a spike in our insurance rates. This legislation will combat fraudulent claims, enhance road safety, and potentially lower insurance rates for motorists. I thank Rep. Cuellar, the American Trucking Association, and all supporters for their collaboration.”
